PSBs seek easing of loan recast rules in first meet with new RBI Governor

The RBI has injected durable liquidity through open market operations of Rs 1.36 trillion in the current financial year

Reserve Bank of India (RBI) Governor Shaktikanta Das moved swiftly into his new job on Thursday by holding discussions with chiefs of Mumbai-based public sector banks (PSBs), who wanted rules for recognising bad loans to be eased.

They discussed liquidity in the system, credit growth, financial support to micro, small and medium enterprises (MSMEs), and the state of finance companies.

“In keeping with a well-articulated consultative approach, the governor had free-flowing discussions on important issues like liquidity, credit offtake, and conditions of MSMEs and finance companies,” said a senior banker aware of the deliberations.

During the discussion, bank chiefs sought